SMSF Residential Property: What You Can Still Do
The rules for SMSF residential property borrowing changed from 10 August 2026. While new Limited Recourse Borrowing Arrangements (LRBAs) generally can no longer be established to purchase ordinary residential investment property, there are still finance options available for existing SMSF property owners and eligible grandfathered arrangements.
Already Have an SMSF Residential Property Loan?
If your SMSF already owns residential property under an eligible Limited Recourse Borrowing Arrangement, you may still be able to refinance your existing SMSF loan.
Just because your SMSF loan was suitable when you purchased the property does not mean it is still competitive today. Interest rates, lender products and lending policies change over time.
At Canny Finances, we can review your existing SMSF residential loan and compare available refinancing options to see whether there may be an opportunity to:
- Secure a more competitive interest rate
- Reduce loan repayments or interest costs
- Move from your existing lender to another SMSF lender
- Review your current loan term and repayment structure
- Access a lender or loan product better suited to your existing SMSF arrangement
Purchased or Entered Into an Arrangement Before 10 August 2026?
Existing SMSF residential borrowing arrangements are protected under transitional rules. Certain residential property transactions entered into before the new rules commenced may also continue, even where settlement occurs after 10 August 2026.
Eligibility depends on the timing and structure of the transaction, so the purchase contract, LRBA and related documentation should be reviewed before proceeding.
SMSF Residential Property Without Borrowing
The changes relate to borrowing for residential property. They do not prevent an SMSF from purchasing an eligible residential investment property using the fund’s own available cash, provided the investment complies with superannuation laws and the fund’s investment strategy.
Looking to Buy Commercial Property Through Your SMSF?
SMSF borrowing has not disappeared altogether. Eligible SMSFs can still use an LRBA to acquire qualifying business real property, subject to SMSF rules and lender requirements.
This may include eligible offices, warehouses, factories, retail premises and other commercial properties.
Have an Existing SMSF Property Loan?
Let Us Review It
If you already have an SMSF residential property loan, it may be worth checking whether your current interest rate and loan structure are still competitive.
Canny Finances can compare SMSF lenders and refinancing options to help you understand what may be available for your existing SMSF property loan.
Speak to us about an SMSF loan review.
Important: SMSF borrowing and refinancing are subject to superannuation law, lender requirements and individual circumstances. Canny Finances provides credit assistance and does not provide financial, taxation or legal advice. You should obtain appropriate independent professional advice regarding your SMSF strategy and structure.